Macau’s VIP gaming revenue declined 15.7 percent year-on-year in the second quarter of 2016, according to data from the Gaming Inspection and Coordination Bureau.
VIP GGR in 16Q2 came in at MOP 26.6 billion (US$3.3 billion), down from MOP 31.6 billion during the same quarter in 2015.
Mass-market GGR also fell, albeit only slightly, from MOP 25.3 billion 15Q2 to MOP25 billion in 16Q2.
In a note on Monday, Bernstein said the shift from VIP to mass will intensify as new casinos open over the next three years.
“We expect the paradigm shift from VIP to mass to intensify as new large scale casinos are slated to open in 2016-2018, starting with the Wynn Palace in August and Sands China’s Parisian in mid-September,” said Bernstein.
Last week, Morgan Stanley noted that Macau’s second quarter was the worst in five years, mainly due to VIP and weaker mass revenue.
Most of the downside came from VIP, which was hit by a phone betting ban effective on May 9, while the mass market segment was affected by factors such as the Euro Cup and the opening of Shanghai Disneyland, said the brokerage.